Safe Harbor Requirements
To qualify as a Safe Harbor plan, a 401(k) plan must meet certain requirements including:
- All eligible employees must receive an employer contribution (matching or non-elective) meeting Safe Harbor guidelines.
- Safe Harbor contributions (including those made by the employer) are 100 percent vested immediately.
- Safe Harbor contributions may not be subject to allocation conditions (such as requiring that participants be employed on the last day of, or work a minimum of 1,000 hours or service during, the plan year).
- A Safe Harbor notice must be given to all eligible employees between 30 and 90 days before the beginning of the new plan year.
- The plan document must be amended to reflect the selected Safe Harbor formula prior to the start of the new year.
Back to Top | Next
Ohio National is not affiliated with, nor does it endorse or sponsor, any particular prospecting, marketing or selling system.
